POPULAR WORDS

The state government Budget surplus has already grown by an estimated $580 million on the figure reported just last month, the Deputy Premier and Treasurer Terry Mackenroth announced today. Mackenroth says the strong performance of equity markets are expected to boost the surplus from $2.725 billion to more than $3 billion for the 2004/05 financial year. "The figure announced in the State Budget on 7 June was based on estimated investment earnings of approximately 14% for 2004/05," he says. "However, preliminary estimates of investment earnings for 2004/05, taking into account the final few weeks of June after the Budget was handed down, now suggest the final figure will be in the order of 18.5%. "This increase is likely to boost the surplus by some $580 million, although the final Budget result won't be known until Treasury completes the 2004/05 report on state finances, due out in October." The state has substantial funds invested with Queensland Investment Corporation to cover superannuation and other employee entitlement liabilities. The Commonwealth and other states have largely unfunded or part-funded superannuation schemes. Mackenroth stresses that the earnings on these investments are not available for general expenditure. "Consistent with the government's long-term funding strategy, all earnings will be reinvested in order to provide a buffer against future periods when the markets aren't so strong," he says.